MP urges British consumers to save more

Consumers need to be encouraged to save more following the recession, according to one MP.

Mark Hoban, shadow financial secretary to the Treasury, said the UK economy has become too heavily reliant upon debt over the past couple of years and this must change.

He claimed that the savings ratio has increased during the recession as people have re-evaluated their finances.

"Let's make sure that, so people feel more confident in the future, rather than borrowing again, people save more," Mr Hoban added.

He added that savings are needed both for unexpected occurrences, such as redundancy and retirement.

Consumers have until April 6th to take advantage of their 2009-10 tax-free Isa allowance, which is £10,200 for over-50s and £7,200 for all other savers.

From the next tax year, the higher Isa allowance will become available to all consumers, meaning they will be able to place £5,100 in a cash Isa and the same amount in a stocks and shares account.

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2010-03-04 13:05:25 © Moneyextra.com